Ten Difficult Things About Probate Real Estate

Probate
sales happen when a homeowner dies without a will, hence, having the property
sold so its assets and proceeds can evenly be distributed to the remaining
family members. Either the executor of the will or a real estate attorney is
required to handle the said matter. The attorney or the representative is most
likely to hire a real estate agent to sell probate real estate to potential
buyers.

Laws on Probate Real Estate Vary

Probate
laws in each state vary, so do not forget to ask your attorney just in case
there is a need for a proceeding to occur. Although, some states have
implemented a set of laws called the Uniform Probate Code. The UPC discloses an
easier and quicker transaction than the usual probate process.

Documents
to Start the Process

As
the administrator, be ready to prepare different documents such as (but not
limited to) the following: application form or letter, death certificate of the
homeowner, and the original copy of the will. The application shall include
different information on both the homeowner and the family members and
beneficiaries.

Remember
to ask your local probate court for the official list of the documents you need
so you can already begin with the selling process.

As a
Buyer, Is Probate Real Estate Sale for You?

In
most cases, the real estate properties in the probate market cost less than the
actual market value of the houses; however, the process is often longer and
more complex. If you need to buy a house quickly, then probate real estate may
not be suitable for you.

But,
if you have the time to partake in a process which can possibly give you some
good benefits, then probate sales may be for you. Probate real estate sales
require a huge amount of patience.

Probate Sale’s “As Is” Aspect

Although
a probate court actually oversees the process, it is still not required for
them to inspect and repair the property before it is considered for selling.
You must know that the house will be bought “as is.”

To
avoid numerous dilemmas on your house in the future, as a buyer, it is
important for you to know the situation of the property before you write an
offer. You may need to shell out money to have the real estate thoroughly
inspected. You do not have to worry as this inspection is surely worth your
time and money.

How to Make an Offer?

Like
traditional real estate sales, you need to make an offer for the house you want
to have. In probate real estate transactions, buyers need to give a deposit
amounting to 10% of the offer price to secure a spot for the bidding of the
house. This however, does not guarantee that you will win in the bidding
process. Once you are confirmed as the final buyer, this deposit will then be
added to your house payment.

For
those who will not be awarded as the final buyer, you will have your deposit
back. But if you decide to pull out from the process before the bidding, then
the deposit becomes non-refundable.

Bidding Process

Usually,
probate property sales undergo court biddings to ensure that the property will
be sold to the right individual. Once the court session happens, every party
who made an offer shall attend the hearing. This hearing is in an auction-style
set-up. The various buyers will continuously raise their respective bids until
a single bidder remains and outbid everyone.

Also,
be prepared as delays and other glitches may happen during the course of the
sale.

Patience is a Virtue

Unlike
a traditional home sale, probate real estate sale is significantly longer. It
is not a straightforward process; you will have to exert a tremendous amount of
time to acquire the property that you like.

Sometimes,
probate court sessions handle many cases in a day, thus the need for you to be
patient while waiting for your turn. It may take months for the official buyer
to obtain the final approval for probate real estate sale. Also, probates are
not flexible when it comes to contingencies so it is the buyer’s responsibility
to ensure that he or she has the financial capacity to immediately pay for the
real estate – once it is awarded.

No Assurance

One
thing to take note of in probate real estate sales is that there is absolutely
no assurance that you will be the rightful owner of the property you kept your
eye on. You will be battling out with other eager bidders on court, and the
seller would not adjust to your timeline and other attempts for financial
negotiation.

For
this, you have to prepare meticulously. Review the rules and terms of sale and
ask for advice from your probate-experienced agent so you would be fully
prepared in the court session.

Prepare the Checks Beforehand

The
final buyer shall present the decided bid amount through a cashier’s check. So,
make sure that you have a check payable to the respective person or individual
with at least 10 percent of your maximum bid amount. If you fail to bring this
check, then you would not be able to buy the property.

Finally,
once the buyer proved that he or she has the financial capacity for the probate
house sale, then the contract signing will happen.

Do
not forget to ask your attorney and realtor for advice on your probate-related
decisions. The process may be complex and lengthy, but it also has benefits
which can be reaped in the long run.